Public liability insurance is a crucial component of safeguarding yourself and your company as a business owner or independent contractor. If someone is hurt or has their property harmed as a result of your business operations, you are covered by this kind of insurance. What transpires, then, if you lack public liability insurance?
Lack of public liability insurance might have serious repercussions. Without insurance to pay the costs in the event that someone is harmed or their property is damaged as a result of your business operations, you will be held personally responsible for the costs. This implies that you might be held liable for a substantial sum of money, which might have disastrous financial repercussions for both you and your company.
Additionally, going without public liability insurance might hurt your reputation and make it harder for you to draw in new customers. Because it demonstrates a lack of professionalism and accountability, many companies and people will not want to work with someone who does not have insurance.
So, what kind of insurance do you need if you work for yourself? In addition to public liability insurance, other insurances might also be required for your particular sort of business. For instance, you’ll require workers’ compensation insurance if you have employees. You must get commercial auto insurance if you drive a car for work. It’s crucial to evaluate the risks involved with your business and decide which insurance policies are required to safeguard both you and your company.
Do you require an ABN to purchase public liability insurance? No, you don’t need an ABN to buy public liability insurance, to put it simply. But obtaining an ABN can simplify and streamline the procedure. Additionally, it demonstrates that you are a real company and could be required by some insurance providers. In summary, having public liability insurance is essential for safeguarding both you and your company. Lack of insurance can wreck your finances and harm your image. As a self-employed person, it’s crucial to evaluate the risks involved with your business and establish which insurance policies are required to safeguard both you and your company. Although you are not required to have an ABN in order to buy public liability insurance, having one helps streamline the process and demonstrate your legitimacy as a company.